How to Create a Gold Jewellery GST Bill Correctly

A gold jewellery GST bill is a tax invoice that complies with GST rules by including specific details such as your GSTIN, the customer's GSTIN if registered, the HSN code for gold jewellery, the taxable value, applicable CGST and SGST or IGST rates, and a unique invoice number. If your business turnover exceeds ₹5 crore, you must generate an e-invoice with an IRN for B2B supplies. This article covers why accurate GST billing is critical in the jewellery trade, how to prepare the bill step-by-step, an example with figures, common errors to avoid, and how HelloBooks supports GST invoicing and filing.

Why this comes up / what goes wrong

Jewellery business owners and accountants often struggle with GST billing due to the complexity of tax rates, HSN codes, and compliance requirements. Gold jewellery attracts specific GST rates and must be invoiced correctly to claim input tax credit and avoid penalties. Errors in invoice details, missing GSTINs, or incorrect tax splits can cause compliance issues and delays in GST return filing. For businesses in hubs like Jaipur, Surat, or Thrissur, managing multiple invoices manually or in Tally can be time-consuming and error-prone.

Step-by-step

1. Collect supplier details: Include your registered business name, address, and GSTIN exactly as on your GST registration.
2. Assign a unique invoice number: Use a consecutive serial number up to 16 characters for the financial year, per Rule 46 [cgst-rule-46/rule46-particulars].
3. Enter invoice date: The date when the invoice is issued.
4. Add recipient details: Record the customer's name, address, and GSTIN if registered. For unregistered customers, mention their name and address.
5. Specify HSN code: Use the correct HSN code for gold jewellery (e.g., 7113 for jewellery made of precious metals) to comply with GST invoicing standards.
6. Describe goods: Provide a clear description of the gold jewellery sold.
7. Quantity and unit: Mention the quantity sold and unit of measurement.
8. Calculate taxable value: After any discounts, calculate the taxable value of the goods.
9. Apply GST rates: Charge the correct CGST and SGST or IGST rates applicable to gold jewellery.
10. Show tax amounts: Clearly state the amount of each tax component.
11. Mention place of supply: Include the state name for inter-state supplies.
12. Note delivery address: If different from the place of supply, specify the delivery address.
13. Indicate reverse charge if applicable: State if tax is payable on reverse charge basis.
14. Sign the invoice: Include your signature or digital signature.
15. Generate e-invoice if turnover > ₹5 crore: Obtain an IRN and signed QR code for B2B invoices as per the e-invoicing mandate effective from 1 August 2023 [einvoice-threshold-5cr/einv-5cr-from-2023-08-01].

Example (fictional figures)

A gold jeweller in Jaipur sells gold bangles worth ₹1,20,000 on 15/05/2024 to a registered dealer in Rajasthan.

• Taxable value = ₹1,20,000
• Assume GST rate = 3% CGST + 3% SGST (illustrative)

Calculations:

₹1,20,000 × 3% = ₹3,600 (CGST)
₹1,20,000 × 3% = ₹3,600 (SGST)
Total GST = ₹3,600 + ₹3,600 = ₹7,200
Total invoice value = ₹1,20,000 + ₹7,200 = ₹1,27,200

The invoice includes:

• Supplier GSTIN and details
• Buyer GSTIN and details
• Unique invoice number
• Invoice date 15/05/2024
• HSN code 7113
• Description: Gold bangles
• Quantity: 10 pieces
• Taxable value ₹1,20,000
• CGST ₹3,600
• SGST ₹3,600
• Total ₹1,27,200
• Place of supply: Rajasthan
• Signature

Common mistakes

• Missing or incorrect GSTIN: Always verify the GSTIN of both supplier and recipient to avoid ITC denial.
• Wrong HSN code: Use the correct HSN code for gold jewellery to prevent GST scrutiny. Refer to official HSN lists.
• Incorrect tax rates or splits: Confirm applicable CGST/SGST or IGST rates for your transaction type.
• Non-unique invoice numbers: Maintain a proper serial sequence for invoices within the financial year.
• Not generating e-invoices when required: If turnover exceeds ₹5 crore, generate e-invoices with IRN for B2B sales to comply with the mandate.
• Inaccurate invoice details: Double-check all fields like quantity, description, and taxable value to avoid mismatches during GST return filing.

Learn more about creating compliant invoices in our GST invoicing guide.

Doing this in HelloBooks

HelloBooks helps jewellery businesses generate GST-compliant invoices with the correct CGST/SGST or IGST split and HSN codes automatically, ensuring all Rule 46 particulars are filled consistently. For businesses exceeding the ₹5 crore turnover threshold, HelloBooks supports e-invoicing by generating the IRN and embedding the signed QR code on your invoices instantly, saving time compared to manual portal uploads. It also files your GSTR-1 and GSTR-3B returns directly from your recorded invoices, ensuring your returns match your bills. To simplify your GST billing and filing, explore HelloBooks GST invoicing and HelloBooks for India.

Frequently asked questions

What is the GST rate on gold jewellery?
Gold jewellery generally attracts a GST rate of 3% CGST and 3% SGST (6% total) when sold as jewellery, but specific rates should be confirmed with the latest GST notifications. Always use the correct HSN code (7113) for gold jewellery on your invoices.

When is e-invoicing mandatory for gold jewellery businesses?
E-invoicing is mandatory for B2B supplies if your aggregate turnover exceeds ₹5 crore in any financial year since 2017-18, effective from 1 August 2023. This means you must generate an Invoice Reference Number (IRN) and signed QR code for such invoices [einvoice-threshold-5cr/einv-5cr-from-2023-08-01].

Can I issue a GST bill to unregistered customers?
Yes, you must issue a GST bill even to unregistered customers. In such cases, mention the customer's name and address but not GSTIN. GST is charged as usual, and the invoice must comply with Rule 46.

What are the due dates for filing GSTR-1 and GSTR-3B?
For monthly filers, GSTR-1 is due on the 11th day of the month following the tax period, and GSTR-3B is due on the 20th day [gstr1-due-date/gstr1-monthly-11th, gstr3b-due-date/gstr3b-monthly-20th]. Quarterly filers under QRMP have later due dates.

How do I ensure my gold jewellery GST bills are error-free?
Use a GST invoice validator tool to check your invoice details for compliance with Rule 46, including GSTINs, HSN codes, invoice numbering, and tax calculations. HelloBooks offers such validations to reduce errors GST invoice validator.

What is the HSN code for gold jewellery?
The HSN code for gold jewellery is typically 7113, which covers articles of precious metals or clad with precious metals. Using the correct HSN code is mandatory on GST invoices.

Key takeaways

• A gold jewellery GST bill must include all Rule 46 particulars, including GSTINs, HSN code 7113, invoice number, tax rates, and signatures.
• E-invoicing with IRN is mandatory for B2B sales if turnover exceeds ₹5 crore from 1 August 2023.
• Maintain unique, consecutive invoice numbers and accurate customer details to avoid GST compliance issues.
• Use correct CGST/SGST or IGST rates and tax calculations on your invoice.
• HelloBooks automates GST invoicing, e-invoicing, and filing to reduce manual errors and save time.

Start creating GST-compliant gold jewellery bills with ease. Start on the Free plan (200 transactions a year, GSTR-1 and 3B filing for one GSTIN).

This article is general information, not tax or legal advice. Rules change; confirm the current position on gst.gov.in or with your chartered accountant before acting.